GE Energy, one of the world’s largest providers of power-generation equipment and services, has secured orders totaling over $3 billion to provide energy technology for a range of power-related projects in Brazil, Australia and Egypt. The projects involve everything from natural gas production to electrical grid technologies.
Iraq, China and several other nations are also slated for orders with GE Energy.
"Energy technologies – from exploration to power generation – are in high demand by our customers, particularly in the emerging markets," says GE Vice Chairman John Krenicki. This statement is supported with emerging market Brazil accounting for the bulk of the order, investing $800 million for wind and natural gas turbines to produce over 1 GW of electricity.
Brazilian oil and gas company OGX Petroleo e Gas Ltda. has also put forth $230 million for a subsea and surface contract.
Focus: Natural Gas, Oil and Wind
Marking a first for the power giant, Australia has selected GE Energy’s steam turbine-driven compressors, which tap stranded gas reserves, to support its Shell Prelude Floating Liquefied Natural Gas (FLNG) platform. Another $300 million will come from contracts linked to two combined-cycle power plants in Egypt, for which GE Energy will supply six advanced F-Technology gas turbines and support services.
Other key wins include a $40 million contract from BP in Iraq to boost oil recovery and production and over $1.5 billion for GE’s star 1.6-100 wind turbine, the most efficient of its type, which will support 750 new deals. In addition, GE Energy will develop energy efficiency solutions for 35 existing and “greenfield” facilities for global brewer Anheuser-Busch InBev in China.
GE Energy generated over $10 billion in revenue but profit was down by 19% in the second quarter thanks in part to declining prices for wind and gas turbines. In the midst of falling profits, sales and orders were increasing.
Stock prices rose after the announcement of the new orders.
According to GE CEO Jeffrey Immelt, General Electric’s shifting focus going forward is on industrial operations and less on finance.
Key Statistics – World Wind Power (source: World Wind Energy Association)
- During the first half of 2010, 16,000 MW were added as compared to 18,405 MW for the same period in 2011, according to worldwide wind capacity statistics. This represents an increase of 15%, bringing the total wind capacity to 215,000 MW at the end of June 2011.
- Global wind capacity statistics indicate an increase of over 9% within six months and more than 22% annually; these percentages were mid-year 2010 and mid-year 2011 comparisons. However, in comparison, the annual growth rate for 2010 was above 23%.
- China, Germany, India and Spain have added 74% of new global wind capacity.
- China’s overall installed capacity was approximately 52 GW by June 2011. In the first half of the year 2011, China accounted for 43% of the world market for new wind turbines, compared to 50% for the last full year of 2010.